Markets watchdog Sebi has imposed a fine of Rs 2 lakh on an employee of Titan Company for violating insider trading norms back in 2018.
Theekevedu B Alexander (noticee) was a designated employee of the company and had traded on two trading days during the period from September 23 to November 12, 2018 -- a period during which the trading window was closed.
Besides, his wife Sarina Biju Alexander executed trades during closure of the trading window. As per the Prohibition of Insider Trading (PIT) regulations, designated persons and their immediate relatives shall not trade in securities when the trading window is closed.
While imposing the Rs 2 lakh fine, Sebi, in its 11-page order, said that Alexander and his wife were not in possession of any UPSI (Unpublished Price Sensitive Information) while they traded during the period when the trading window was closed.
This acts as a mitigating factor in the present case, it added. Citing submissions made by the noticee, Sebi said the company's audit committee had taken note of the non-compliance of the Code of Conduct by the noticee and issued a warning letter to remain diligent and be in complete compliance of the Code of Conduct henceforth.
"Further, the audit committee advised the noticee to pay Rs 1,00,000 to Titan ECHO (Educate to Carry Her Onwards), a programme to support the education of underprivileged girl children as a constructive measure for the aforesaid non-compliance and the same was subsequently, done by the noticee.
"In this regard, it is observed that the noticee has submitted requisite documents/ proofs establishing his aforesaid contention under current proceedings. This also acts a mitigating factor under the current proceedings," the order said.